Nintendo is shutting down its European headquarters in Großostheim, Germany, laying off 130 workers in the process, the company announced on Friday.

Frankfurt will become the gaming firm's new European headquarters following the closure of the office and warehouse in Großostheim. The firm is also consulting on "outsourcing and reorganising some functions" in Europe.

"These intended measures have not been made lightly and have only been arrived at after thorough analysis and careful consideration," the company said in a statement.

"The intended measures will sadly have a direct effect on some of the employees based in the Großostheim and Frankfurt offices in Germany and would lead to the release of approximately 130 permanent employees."

The company will go through a consultation process before the closures and layoffs occur, and it hopes that they will "in the long term… better enable the European business to adapt to the rapidly changing business environment."

In May, Nintendo posted a net annual loss of £135m, and predicted just 3.6m sales of its flagship Wii U console for the 2014/15 financial year.

Full Statement from Nintendo of Europe

Nintendo of Europe has entered into a consultation process on a number of changes it is intending to make to its European business which, in the long term, will better enable the European business to adapt to the rapidly changing business environment.

The measures include the consolidation of the current European headquarters in Großostheim (Germany) to Frankfurt (Germany), the closure of the warehouse and office in Großostheim, as well as outsourcing and reorganising some functions.

These intended measures have not been made lightly and have only been arrived at after thorough analysis and careful consideration. The intended measures will sadly have a direct effect on some of the employees based in the Großostheim and Frankfurt offices in Germany and would lead to the release of approximately 130 permanent employees.

Nintendo of Europe is committed to a fair consultation process with the local Works Council in Germany with the objective of providing clarity and support for all affected employees as soon as possible.